Building insurance- how much to insure

I’m interested to know how much people insure their home for for building insurance. Every year the building insurance rises as the insured amount automatically gets adjusted upwards. im not sure whether I’m insuring more than I need too.

how much does it cost to build these days in Sydney? Is $600k - $700k a good guesstimate for a two story house or am I way off?

 

Big difference between a conventional 4 bed project home on 550m2 and a 4,000m2 architect bespoke design. Fitout etc can all affect price to rebuild

Most insurance co's offer a calculator to check. I see you can buy a valuation opinion : insurance-valuation-quote :: L&P Quantity Surveyors

Choice have some opinion : Home insurance calculators: are they accurate? - CHOICE

 

Would purchase price minus land value be a good indication?

 

Only if you know the construction costs

 

No. Purchase price may have little relevance to what a house costs to build, especially if you bought it decades ago , or even recently some people strangely pay more for an established house than they could build one for. You may also want to insure for more than build cost to cover demolision of remanants, debris removal and site clean up

 

No.

In many cases the difference between vacant land and land with house is far less than the cost of rebuilding, particularly in desirable suburbs.

 

Ensure you have provided for the cost of removal of debris and asbestos

 

One needs to read the PDS.

Some policies include these in the sum assured while others have these as extras above the sum assured.

Also, most policies have a safety net in case one underinsures.

 

Dont forget about co-insurance What Is a Coinsurance Formula?

 

Resurfacing this topic. How does everyone figure out their amount to insure? Cost of a new build of the same type of house + demolition costs?

 

Read the PDS, many have separate figures for demo, consultants and building.